Co-working major WeWork India has posted a profit of Rs. 174.13 crore in the first half of the 2024-25 financial year, driven by strong demand for premium flexible workspaces. The company’s total income stood at Rs. 960.76 crore during the April-September period, according to its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) last week.
In the full 2023-24 fiscal, WeWork India had reported a net loss of Rs. 135.83 crore on a total income of Rs. 1,737.16 crore. As of January 15, 2024, the company's net debt stood at Rs. 316.95 crore.
WeWork India, established in 2017, is promoted by the Bengaluru-based Embassy Group and holds the exclusive license for the ‘WeWork brand in India. Embassy Group owns 76.21% of WeWork India, while WeWork Global holds a 23.45% stake. In June 2021, WeWork Global invested $100 million in the Indian entity.
The company recently raised Rs. 500 crore through a rights issue, primarily to reduce debt and accelerate growth. As per the DRHP, the proposed initial public offering (IPO) is an Offer for Sale (OFS) of up to 4.37 crore equity shares. Embassy Buildcon LLP will offload up to 3.34 crore shares, while 1 Ariel Way Tenant Ltd, a WeWork Global entity, will sell up to 1.02 crore shares. Since the IPO is an OFS, WeWork India will not receive any proceeds from the public listing.
The company stated that the objective of the IPO is to enhance brand visibility, provide liquidity to existing shareholders, and create a public market for its equity shares.
WeWork India specializes in leasing Grade A office spaces across major metropolitan cities, transforming them into flexible workspaces for businesses and individuals. The company operates a portfolio of 77 lakh sq. ft., of which 70 lakh sq. ft. is already functional, with an operational desk capacity of 1.03 lakh. WeWork India has a presence in Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, employing over 500 people.